Staff Analysis of the Legislation

This bill is DOR's annual income tax conformity bill. However, it also contains many provisions which affect counties. First, it revises TAVT and provides that no TAVT is collected on replacement titles for vehicles which are not less than 15 years years old. Second, it completely exempts jet fuel from SPLOST, ESPLOST, and single county TSPLOST (and presumably MOSt although it is silent on this point). Third, it partially exempts jet fuel from LOST and MARTA levies and rates in effect on December 30, 1987. Fourth, it redirects local sales and use tax revenue derived from jet fuel to state aviation programs and purposes and allows any excess to be appropriated for other purposes. ACCG opposes the sales tax exemption for jet fuel, which is estimated to cost local governments up to $21M per year (the vast majority in Clayton County).